Posts Tagged investment calculations
Why Most Real Estate Investors are Doomed to Failure
Let me start by saying that, sure, real estate can be a good investment. Real estate provides a hedge against inflation. And real estate often amounts to a forced saving plan. But most of the people who’ve jumped onto the real estate investment bandwagon over the last few years are going to fail. Here’s why:
Ignoring Returns on Investment
When you compare bank accounts, you know that 5% interest means more money in your pocket than 2% interest.
Similarly, you know that a mutual fund with a track record of 11% annual returns has made more money than a fund with a track record of 8% annual returns. Duh.
One picks investments and evaluates investment performance by looking at the return on the investment. This rule is true for stocks, bonds, and everything else—including real estate.
Tags: bank cd, including real estate, investment bandwagon, investment calculations, investment real estate, money in your pocket, real estate investment, real estate investors, spreadsheet program, stocks bondsRelated posts
Why Most Real Estate Investors are Doomed to Failure
Let me start by saying that, sure, real estate can be a good investment. Real estate provides a hedge against inflation. And real estate often amounts to a forced saving plan. But most of the people who’ve jumped onto the real estate investment bandwagon over the last few years are going to fail. Here’s why:
Ignoring Returns on Investment
When you compare bank accounts, you know that 5% interest means more money in your pocket than 2% interest.
Similarly, you know that a mutual fund with a track record of 11% annual returns has made more money than a fund with a track record of 8% annual returns. Duh.
One picks investments and evaluates investment performance by looking at the return on the investment. This rule is true for stocks, bonds, and everything else—including real estate.
Tags: bank cd, including real estate, investment bandwagon, investment calculations, investment real estate, money in your pocket, real estate investment, real estate investors, spreadsheet program, stocks bondsRelated posts